Rising House Prices Make Selling More Attractive

House prices jumped 1.9% in March from the prior month, which sent the year-over-year increase in prices to their highest level in seven years.

CoreLogic reported Tuesday morning that home prices nationwide are up 10.5% from March 2012.

This change represents the biggest year-over-year increase since March 2006 and the 13^th consecutive monthly increase in home prices nationally, according to the company’s chief economist Mark Fleming.

“The pace of price appreciation has been accelerating throughout 2012,” Fleming said, and it is continuing into the 2013 home buying season.

However, the upward trend in prices is being fueled by a limited supply of homes on the market and increasing demand from investors and homebuyers.

But rising prices help more underwater borrowers return to positive equity. And it makes selling more attractive for many homeowners who have been waiting for the right time to put their house up for sale.

Fannie Mae released its April National Housing Survey on Tuesday, which shows increasing optimism about the housing recovery.

“For the first time in the survey’s three-year history, the majority of Americans surveyed now expect home prices to increase,” said Doug Duncan, senior vice president and chief economist at Fannie Mae.

He also noted that the share of homeowners who think it is a good time to sell has doubled from 15% last year to 30% in April.

“With these gains, the housing market is poised to enter the spring selling season on sound footing,” Duncan said.